Period-End Closing Procedures
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Loading...Period-end Closing Services aim to drive an efficient, repeatable closing process through the effective use of resources, streamlined processes and integrated technology, in order to provide the proper balance of speed, reliability, and transparency.
TopCFO will not focus on the accounting perspective on what needs to be done to close the month, we’ll focus on the management perspective of the CFO, he being the one in charge and responsible of the closing process.
So what is actually a period-end closing?
From a strict accounting and finance point of view, closing is the process of advancing from one month or period to the next or from one year to the next. The result of the period-end closing are the financial statements and management reporting.
Who are the stakeholders in a period-end closing?
The company CFO is responsible for closing as a process. The CFO is responsible for creating and reviewing all period-end activities to ensure the period-end financial statements accurately reflect the results of the company’s activities.
The Controller / Head of Controlling is in charge of the internal cost allocations and makes sure that all costs are correctly allocated. The result of the controllers work in the period end closing is the management reporting package.
The Accountant / Head of Accounting is in charge of the correct and proper booking of all financial documents. The result of the accountants work in the period end closing are the financial statutory statements and their legal compliance.
All stakeholders are equally important in the closing process, the CFO being the one that has the most difficult task to align all involved parties also from within Finance also from without Finance like Sales, Production, Purchasing, Logistics, etc.
The period-end closing process gains complexity the more the business is growing and the more parties are involved. On top of the multiple involved parties in the closing process, we have also the particularities of the ERP that you are working with. This process requires a multidisciplinary approach that a seasoned CFO can handle and manage. The success of a period-end closing process sits in the transparent alignment of all involved parties and in the raised awareness of everyone’s role in the closing process.
Because of the high complexity and because of being an indirect process the period end closing is often underestimated.
TopCFO has the knowledge, background, and experience to align all period-end closing involved parties so that a smooth and accurate closing process can be made.
The closing starts before the period ends and finished long after the period has closed with a comprehensive “lessons learned” for the coming period.
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